We study a model `a la Kyle (1985) where a trading firm hires a financial engineer to develop proprietary technology for an informational edge. The signal produced through this hiring is firm-specific and non-contractible, leading to a bilateral monopoly in wage determination. The model admits multiple self-fulfilling equilibria in technology innovation. In one equilibrium, excessive and inefficient innovation arises due to technological opacity and misaligned incentives between the firm and the engineer. The model connects financial market outcomes to contractual frictions in the finance industry and yields novel empirical implications for identifying inefficiencies in financial technology investment.